Economy & business — Topics

20 Oct 2022

Impact of Rising Interest Rates on HDB Flat Owners on Private Bank Home Loans

About 80% of HDB flat owners with private bank loans are on mortgage packages that track market interest rates with some lag, while 20% have packages that move in tandem, causing their repayments to rise recently; HDB concessionary loan rates remain unchanged at 2.6%.
The Government has introduced prudential measures, such as raising the interest rate floor for computing Total Debt Servicing Ratio and Mortgage Servicing Ratio, to ensure borrowers can manage potential further rate hikes.
HDB offers financial assistance to borrowers with HDB loans, including deferring or reducing installments and extending loan tenure, while private bank borrowers are encouraged to contact lenders early for restructuring, with inter-agency support available.
The non-performing mortgage rate among HDB flat owners has stayed low and stable, and the Government remains committed to maintaining public housing affordability and accessibility.

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20 Oct 2022

Budget Spent on Pioneer Generation and Merdeka Generation Packages

The Pioneer Generation and Merdeka Generation Packages have disbursed $3.04 billion and $0.72 billion respectively as of March 2022, with substantial remaining balances in the dedicated funds.
Approximately 450,000 Pioneer Generation and 500,000 Merdeka Generation seniors have benefited since the packages began, with around 340,000 and 480,000 still alive as of September 2022.
The government has enhanced benefits for both packages and will top up the funds if necessary to meet future commitments, while noting that the Silver Support scheme has a different objective and will be reviewed separately.

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20 Oct 2022

Impact of 15-month Wait-out Period on Private Property Downgraders

The Minister explained that the 15-month wait-out period for private property owners buying non-subsidised HDB resale flats aims to moderate demand and prioritise affordable public housing for first-time buyers, with exemptions for seniors aged 55 and above moving to smaller flats and case-by-case assistance for those with extenuating circumstances.
Over the past three years, about one in ten resale flat buyers were current or former private property owners, a group that tends to pay higher cash-over-valuation amounts; this measure is a temporary response to the buoyant resale market since 2020.
The government has increased the supply of both public and private housing, with a 75% rise in confirmed list units for the Government Land Sales programme in 2022, and will continue to monitor market conditions to ensure housing remains affordable and accessible.
In response to supplementary questions, the Minister noted that the exemption for seniors is limited to 4-room or smaller flats to aid retirement adequacy, and while the wait-out period may affect rental demand, it is intended to moderate overall resale market pressure.
The government also highlighted precautionary measures against higher interest rates, such as adjusting loan-to-value limits, and reiterated that Singaporeans facing financial difficulties can approach HDB for case-by-case assistance.

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5 Oct 2022

Qualifying Criteria for Merchants’ Enrollment in CDC Vouchers Scheme

The CDC Vouchers Scheme targets heartland merchants and hawkers in trades like F&B, minimarts, household retail, and salons, with registration via CDC websites, associations, or SME Centres, followed by an on-site assessment by CDC Ambassadors.
Over 18,000 merchants and hawkers have been enrolled since the scheme's launch in December 2021, with ongoing efforts to expand participation.
The Minister did not specify the number of unsuccessful merchant applications, focusing instead on enrollment numbers and eligibility criteria.

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5 Oct 2022

Assistance for Shops and Retail Outlets in HDB Estates to Boost Vibrancy and Competitiveness

HDB shops are vital for community vibrancy and resident convenience, though they face challenges from changing consumer habits and the COVID-19 pandemic, with overall vacancy rates remaining low.
The government has implemented short- to medium-term measures, including the Heartland Digitalisation and Revitalisation Committee’s initiatives like Heartlands Go Digital and the Heartlands Festival, which boosted footfall and revenue, alongside rental waivers and CDC vouchers.
Long-term support includes reviewing the Revitalisation of Shops scheme for upgrades and events, launching the Our Heartlands 2025 programme with $50 million over four years to enhance digitalisation, shopfronts, and association capabilities, and conducting a study to gather stakeholder feedback for future measures.

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5 Oct 2022

Difference between Polyclinics and Private Family Doctors' Charges for Outpatient Consultations and Medications

Gerald Giam asked if patient costs at Healthier SG family doctors would match polyclinics without raising polyclinic fees to match them.
Ong Ye Kung clarified that drug prices for common chronic medications will be made more comparable through subsidies and price limits at participating GP clinics.
Full cost equality for all care components, like consultations and investigations, is not possible due to differing operating costs between polyclinics and GPs.
Polyclinic fee adjustments are based on actual cost changes, such as healthcare worker salaries, and not to artificially equalize charges.
The government aims to reduce cost differences through targeted subsidies rather than forcing identical pricing across settings.

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5 Oct 2022

Proportion of Natural Gas Used for Electricity Generation Derived from Piped Natural Gas versus Shipped Liquefied Natural Gas

In 2021, about two-thirds of Singapore’s natural gas for electricity generation came from piped natural gas (PNG) and one-third from shipped liquefied natural gas (LNG), with some spot LNG used to supplement long-term contracts.
From January to August 2022, term contract prices for PNG rose by about 21% and for LNG by about 38%, while spot LNG prices surged by 113%; year-on-year increases from August 2021 were 20% for PNG, 50% for LNG under long-term contracts, and 224% for spot LNG.
Singapore is exposed to global energy price hikes, and the government is right-pricing electricity while providing targeted assistance such as GST Voucher - U-Save rebates, with the Energy Market Authority prepared to introduce emergency measures if needed.

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5 Oct 2022

Low Take-up Rate for Climate-Friendly Households Programme

Leon Perera questioned whether the $150 e-voucher for energy-efficient refrigerators could be increased due to higher costs and suggested expanding the programme to cover items like bicycles.
The Ministry responded that the voucher amount was based on market surveys to cover the average incremental cost of efficient appliances and that outreach efforts are underway to improve take-up rates.
The programme, targeting low-income HDB households, will be reviewed after its December 2023 end date, with consideration given to extending it to more appliances, including non-electrical ones like bicycles.

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5 Oct 2022

Registration for Overseas Entities who wish to Buy, Sell or Transfer Properties in Singapore as Anti-money Laundering Measure

The debate centered on whether Singapore should require overseas entities to register with ACRA and disclose beneficial owners, similar to the UK’s 2022 anti-money laundering measure, when buying, selling, or transferring properties.
The Senior Parliamentary Secretary noted that ACRA already maintains a register of registrable controllers for companies and foreign entities operating in Singapore, and professionals in real estate transactions must conduct due diligence to mitigate money laundering risks.
She confirmed that agencies are assessing whether a UK-style register would be useful in Singapore, while Murali Pillai asked if such ownership data should be publicly accessible to aid due diligence.
The Senior Parliamentary Secretary acknowledged the concerns and stated the proposal would be taken back for feasibility consideration.

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5 Oct 2022

Indicators Used to Measure Impact of Productivity Grants on SMEs

Leon Perera asked the Minister for Trade and Industry about the indicators used to measure the impact of grants like the Productivity Solutions Grant on SME and micro-SME productivity, and whether grant KPIs and outcomes could be published yearly in aggregate terms.
Minister of State Low Yen Ling replied that Enterprise Singapore uses indicators such as committed value-add and projected skilled jobs creation in its annual Year-in-Review, and cited studies showing over 80% of PSG projects achieved productivity gains like cost savings and revenue gains.
Assoc Prof Jamus Lim asked for more disaggregated background papers from the cited studies to better understand the causal impact of grants on productivity.
Low Yen Ling reiterated PSG’s purpose and uptake, noting over 116,100 applications between FY2019 and FY2021 with 95% approval, and assured that more details from impact studies would be shared.

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5 Oct 2022

Progress on Framework for Equitable Sharing of Losses Between Scam Victims and Financial Institutions

MAS is finalising a fair and effective framework for equitable loss-sharing between scam victims and financial institutions, which is taking longer than expected to ensure shared responsibility across the ecosystem and will be opened for public comments soon.
The Inter-Ministry Committee on Scams (IMCS) and Project FRONTIER have strengthened enforcement and coordination, leading to the freezing of over 7,800 accounts and recovery of more than S$80 million in the first half of 2022, alongside over 4,300 arrests related to scams.
Public education campaigns like "Spot the Signs. Stop the Crimes" are expanding to raise awareness, while the government advises victims to immediately notify banks, call dedicated hotlines, and use the ScamShield app for reporting.
MAS is considering the speed of rolling out the loss-sharing framework and enhancing coordination for real-time scam interventions, but does not currently track response times for interrupting illegal transfers.
Interim recourse for victims remains limited, with authorities emphasizing vigilance and urging the public to report unusual transactions immediately while awaiting the final framework.

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5 Oct 2022

Working with Family Offices to Deepen Investments in Local Companies

The government requires single family offices to allocate at least 10% or S$10 million of their assets to local investments, including listed equities, private equity in Singapore-incorporated companies, or qualifying debt securities.
Agencies like MAS and Enterprise Singapore have established platforms such as "Deal Fridays" and innovation weeks to connect family offices with local companies, while supporting co-investment initiatives through the Global-Asia Family Office Circle.
Family offices benefit the local economy by creating direct and indirect employment, providing patient capital for startups, and offering strategic guidance, while originating from diverse regions like Europe, the US, and Asia.
Efforts to attract family offices include enhancing the operating environment, developing professional skills through accredited training, and fostering community building to collaborate on areas like ESG and philanthropy.
Singapore maintains an open posture to welcome global investments that create jobs and strengthen its role as a financial and innovation hub for Asia.

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4 Oct 2022

Prevalence of Practice of "Special Account (SA) Shielding" by CPF Members

Minister Tan See Leng noted that around 2% of CPF members turning 55 in 2021 practiced "SA shielding" by investing their Special Account savings shortly before age 55 and liquidating after, to prevent funds from flowing into the Retirement Account.
He emphasized that such investments carry costs and risks, including transaction fees and potential losses, and cautioned that financial advisers promoting this without full disclosure may be guilty of mis-selling.
The Ministry will continue monitoring the trend and may take action if necessary, while reiterating the importance of understanding the risks involved.

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4 Oct 2022

Derivation of Prices of Land Leases to Religious Organisations

Ms Sylvia Lim inquired how the prices of land leases for religious organisations like temples and churches are determined.
The Minister explained that state land for Places of Worship is generally sold at fair market value through competitive tenders, while mosque land is directly allocated to MUIS at market price set by the Chief Valuer, often resulting in lower costs.
Lease renewals also occur at current market prices, and the government cannot adjust prices unilaterally due to the Reserves Protection Framework, though discussions and reviews are ongoing to mitigate price rises and short-term tenancies are being offered.

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4 Oct 2022

Tax Evasion Offences Detected and Adequacy of Deterrent Measures in Place

IRAS investigated 465 tax evasion cases from FY2019 to FY2021, with 141 in FY2019, 192 in FY2020, and 132 in FY2021.
Detection relies on data analytics, intelligence, audits, and whistleblower reports, with penalties including fines, imprisonment, and up to four times the evaded tax.
Whistleblowers may receive 15% of recovered tax (capped at $100,000), though most are not motivated by rewards.
The current framework is deemed sufficient for deterrence, and no immediate review of penalties or rewards is planned.

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4 Oct 2022

HDB Homes with Mortgages Financed by Commercial Banks

Sitoh Yih Pin asked the Prime Minister for the percentage of HDB homes with mortgages financed by commercial banks.
Tharman Shanmugaratnam, responding for the Prime Minister, stated that as of the second half of 2022, 42% of HDB households had outstanding mortgage loans.
Of these households with mortgages, 63% were financed by HDB and the remaining 37% by financial institutions such as commercial banks.

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4 Oct 2022

Cryptocurrency Investment Companies Setting Up Operations and Measures in Place to Prevent Money Laundering and Fraud

The Prime Minister's response highlighted that Singapore regulates cryptocurrency activities under the Payment Services Act, focusing on anti-money laundering and fraud prevention, with the Monetary Authority of Singapore administering a rigorous licensing process that has turned away many applicants.
MAS conducts surveillance to identify and shut down unlicensed cryptocurrency service providers, referring suspicious cases to the Police for investigation and listing them on an Investor Alert List to warn the public.
MAS and the Police collaborate on public advisories to alert consumers about fraudulent cryptocurrency investment websites and advise checking MAS’ website for licensed entities.

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4 Oct 2022

Prevalence and Regulation of Cryptocurrency Transactions

Yip Hon Weng inquired about the prevalence of privacy coins, privacy wallets, and mixers in Singapore and the government's regulatory stance.
Tharman Shanmugaratnam stated that anonymity-enhancing crypto tools are high-risk for money laundering and terrorism financing, prompting the FATF to issue guidance and MAS to impose stronger controls on regulated digital payment token service providers.
MAS requires these providers to assess risks, monitor transactions, and report higher-risk activities, though most licensed providers do not offer privacy coins and no data exists on peer-to-peer use of privacy wallets or mixers.

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4 Oct 2022

Unauthorised PayNow Transactions Reported and Funds Recovered

The Prime Minister reported 477 banking phishing scams involving PayNow in 2021 with a median loss of $3,400, and 133 cases in the first half of 2022 with a median loss of $1,200, noting that recovery rates for such transactions are not available.
Anti-scam measures by MAS and ABS include default transaction limits of $5,000 or lower and notification thresholds of $100 or lower, which apply to PayNow, with banks adapting defences like temporarily lowering limits to counter attacks.
Consumers are urged to stay vigilant by never sharing banking credentials, avoiding links in SMS or emails purportedly from banks, and using official banking apps to reduce risks.

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4 Oct 2022

Update on Study into Making CPF Contributions Mandatory for Platform Workers

The Advisory Committee on Platform Workers is engaging with workers and companies to consider mandatory CPF contributions for platform workers.
While many platform workers support mandatory contributions for retirement and housing, some worry about reduced take-home pay, and companies are concerned about higher business costs.
The Committee will continue thorough discussions with both parties and aims to complete its work by the end of the year.

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